We highlight call buying this morning in generally lightly traded options on a dividend exchange traded fund, DVY (iShares DJ Select Dividend). This play seems to reflect investor willingness to earn higher yields via equities that pay steady and attractive dividends given the fact that U.S. Treasuries are still mired in very unattractive levels in terms of yield.
The dividend ETF currently has a 30 day SEC Yield of 3.57% as of Nov. 30, according to the iShares home page, and longer dated U.S. Treasuries are below 2% at the moment. [Four Dividend ETFs with Growth Potential]
DVY screens equities by dividend per share growth rate, dividend payout percentage rate, and average daily dollar trading volume, and then further rank the stocks based on dividend yield.
Currently, top holdings in the fund are LO (3.90%), LMT (2.60%), VFC (2.57%), CVX (2.14%), and ETR (2.10%).
Other ETFs to pay attention to that are focused on dividend paying stocks include:
- SDY (SPDR S&P Dividend)
- VIG (Vanguard Dividend Appreciation)
- VYM (Vanguard High Dividend Yield Index)
- DTN (WisdomTree Dividend Top 100)
- HDV (iShares High Dividend Equity)
- CVY (Guggenheim Yield Hog)
- FDL (First Trust Morningstar Dividend Leaders Index)
- FVD (First Trust Value Line Dividend)
- PFM (PowerShares Dividend Achievers)
- DTD (WisdomTree Total Dividend).
iShares Dow Jones Select Dividend